MONTREAL, May 23, 2012 /CNW Telbec/ - SNC-Lavalin (TSX:
SNC) is pleased to announce that 407 East Development Group General
Partnership ("the Partnership"), a new 50/50 joint venture between
SNC-Lavalin and Cintra Infraestructuras' respective subsidiaries,
has been awarded a contract by the Province of Ontario to design, build, finance, and
maintain Phase 1 of the new Highway 407 East. The project will be
delivered using Ontario's
alternative financing and procurement (AFP) delivery model. The
contract is worth approximately $1
billion (net present value).
"We are pleased to have been awarded this very important highway
project in Ontario," said Gilles
Laramée, Executive Vice-President and Chief Financial Officer,
SNC-Lavalin Group Inc. "Once completed the highway will allow for a
better and more efficient transportation and flow of goods between
Toronto and eastern Ontario."
The 407 East Development Group General Partnership has entered
into a fixed-price contract with the Province of Ontario for the project. Phase 1 of the new
highway will extend 22 kilometres east from Brock Road in
Pickering to Harmony Road in
Oshawa. It also includes a
10-kilometre north-south highway, east of Lake Ridge Road,
connecting Highway 407 East to Highway 401.
"With this award, SNC-Lavalin's capabilities will be put to work
on a large and complex construction project," said Charles Chebl, Executive Vice-President,
SNC-Lavalin Group Inc. "We are committed to the Ontario market, and look forward to working
with our design-build partner Ferrovial to deliver sustainable
transportation infrastructure to the province."
The design and build portion of the contract is expected to take
approximately 3 1/2 years. Once completed, the Partnership will
maintain and rehabilitate the road for 30 years. The Partnership
has entered into a fixed price contract with a 50/50 consortium
made up of SNC-Lavalin Operations and Maintenance and Cintra for
the maintenance and rehabilitation of the road over the concession
period.
"We have significant experience providing operations and
maintenance services for roads across Canada," said Charlie
Rate, Executive Vice-President, SNC-Lavalin Group Inc.," and
we look forward to combining our expertise with that of our
partners to provide added value over the 30-year
contract."
SNC-Lavalin has been present in Ontario since the 1960s, and now has
approximately 5,000 employees in the province working out of 13
offices.
SNC-Lavalin is one of the leading engineering and construction
groups in the world and a major player in the ownership of
infrastructure, and in the provision of operations and maintenance
services. SNC-Lavalin has offices across Canada and in over 40 other countries around
the world, and is currently working in some 100 countries.
www.snclavalin.com.
SOURCE SNC-LAVALIN